A FEASIBILITY STUDY ON THE PRODUCTION OF TILAPIA NOODLES IN STA. ROSA, NUEVA ECIJA A Feasibility Study Presented to The Faculty of Management, Accountancy, Technology And Entrepreneurial Studies In Partial Fulfillment Of the Requirements for the Degree Bachelor of Science in Business Administration Major in Managerial Accounting By: Anne Margareth A. Mauricio Ruby Ann D. Santos Sundcel C. Santos March 2012 ACKNOWLEDGEMENT This dissertation would not have been possible without the guidance and the help of several individuals who in one way or another contributed and extended their valuable assistance in the preparation and completion of this study. First and foremost, our utmost gratitude to Dr. Germina E. Santos, for her unselfish and unfailing support as our dissertation adviser and for her patience and steadfast encouragement to complete this study; Mrs. Marites Agabayani, for the insights she has shared as our English advisor; To Ms. Cristine Fai of Ghoti Pasta House for her inputs especially in the processing of the product, despite the busy schedule, she manage to have spare time teaching us the method of producing our product; To Mr. ___, for providing the information we need with regards to starting our business; To Mr. Allen Roie Manucot, for helping and accompanying us, and for extending his time just to give us free ride. To Mr. Kelvin De Luna, Eric Neil Magno and Jhameson Angeles for their creative inputs and for the unconditional support they have given for the three of us. To market vendors, we give our thanks for being cooperative when we conduct or interview and survey; Our colleagues for the moral support and for cheering us when we almost give up; Last but not the least, our family and the one above all of us, the omnipresent God, for answering our prayers for giving us the strength to plod on despite my constitution wanting to give up and throw in the towel, thank you so much Dear Lord. Dedication With love and sincerity, we would like to dedicate this piece of work to the persons, who in one way or another, contributed much in making this study a successful one. Our loving parents, for their valuable help, moral and financial support; to our loved ones, teachers and friends for their encouragement and spiritual guidance, which greatly inspires us to carry on; and above all, to our Beloved Almighty Father who is always there to guide and protect us in times of troubles during the course of this study. Executive Summary The product line of noodles is taking its way to conquering the market’s taste. And that’s the reason why the researchers decided to venture in this kind of business together with a new variant of noodles to be introduced in the market. This is what we call Tilapia Noodles. This business will be having a beginning capital of Php 1,422,617.09. The company considers itself as manufacturing type of business as it would process its own product from inputs of raw materials. Technology will play a great part in manufacturing because we will be able to produce large volume of products. The direct target market is those who patronize noodle products by means of retailers and groceries.The target market is from groceries from public markets and big groceries of the five municipalities specifically, Cabanatuan City, Sta. Rosa, San Leonardo, Gapan and Jaen. The business would be at Sta. Rosa, Nueva Ecija. Tilapia as main ingredient of the product will came from a contracted supplier. The lot will be divided by five sections: the office, the storage room, production room, the finishing room and the parking lot. Ensuring the quality of product by providing proper management would be implemented. PRODUCTION OF TILAPIA NOODLES Introduction: “Today, about 40% of the flour consumed in Asia is for Noodle manufacture. In recent years, noodles have also become very popular outside Asia and this popularity is likely to increase.” (www.world-foodhistory.com) Noodles consummation has increased dramatically in the past few years. Many companies invest time to produce many varieties of noodles. They introduced new flavor variants as well as product types to add something into traditional noodles that we normally consume. “Such innovations not only helped to refresh the image of well established brands, but also generated new consumer interest in the wider noodles category, one of the most mature areas of the Philippine packaged food market.” (http://www.euromonitor.com) Many people are eager to take adventure into taking new products.It is evident that some of the companies that took risk in investing some effort in making new products’ type succeed. Being Asian, Filipinos love to eat noodles. In fact, big companies like Nissin and Lucky me provides new range of noodle products. They introduced the flavor of noodles from some other Asian countries. ”Noodles enriched with egg whites or eggs provide substantial amounts of riboflavin, niacin, folic acid, iron and thiamin. In addition, noodles contain adequate fiber and protein content needed by the body.”(www.benefitof.com) Just like any other foods, noodles also have the advantages and disadvantages. Eating noodles regularly may give us sufficient nutrients we needed every day. It constitutes many benefits that are good for the body. It can be good substitute at rice because of the use of flour which; if processed, could be a source of energy which is carbohydrates. On the other side, one of the most common types of noodles that we normally consume is the instant noodles. It is very convenient for those who are too busy maximizing the use of their time.But, not all people agree to instant noodles consummation. As stated by Mr. Ron Konzak, author of Book of Ramen, “Usually it's the MSG in the flavor packets that can harm people on low sodium [diets] or [who are] allergic to the stuff."The noodles itself is pretty harmless. MSG is used to enhance the flavor of cupped noodles with no substitute. It is also being used to prolong the expiration of the food. By identifying this harm, the business can think of solutions to resist the use of MSG in its products. “The worldwide instant noodles market is expected to hit 139.2 billion packs by 2015. Some of the key factors driving this market growth include a wider variety of taste and flavour profiles, minimal cooking times, low cost, and the changing lifestyle and buying behaviour of consumers.” (Mile King, http://www.pr-inside.com) Setting up noodle for business would be a great opportunity to contribute to continuous success of the noodle industry. It will require a lot of factors like capital and how the market would buy it. In building up business, we have to know everything about the product that we are going to produce, the processes, the maintenance and the likes. After learning about the noodles, the next step is deciding what additive we should use to make the product better. We consideredconsumer feedbacks on the latest flavourings in noodles. “If you substitute tilapia for red meat in meals two or three times a week, you can reduce your overall intake of calories, fat and cholesterol.” (www.livestrong.com) The latest innovation made in noodles was the use of veggies in it.It is very healthy as vegetables contribute a very good nutrition in human’s body. On the other hand, tilapia flavorings in pasta were also made. Tilapia with noodles will be a good combination. Both are nutritious and have good benefits for the body. Some people claimed that tilapia can be an alternative meal for meat. “Tilapia has long been a favorite fish by the Filipinos.”(pinoybusiness.org) Because of its cheap price and goodness for the health, tilapia became popular in Filipino dishes. The objective of this study is to identify if the product will be feasible in the future. The progress in the noodles industry helps us in identifying the kind of business we want to propose. Also, tilapia and noodles has been one of the most common foods we normally consume, it is possible to mix both nutritious food.The business will cater its products at the public markets of the whole province. We will also supply our products at big groceries; they will sell our products at the final consumers. The location of the business is at Sta. Rosa, Nueva Ecija. The product is new to the market because it is not done yet by manufacturers of noodles. Product/Services The company considers itself as manufacturing type of business as it would process its own product from inputs which are raw materials. The business is a tilapia noodles. Making different types of noodles with tilapia flavorings is the main purpose of the business. The process of noodle making includes mixing of different flours then kneading with the use of machineries. Also, the flavoring and coloring is indicated. Herbs and spices are being added in this process. Tilapia flakes is the main flavor of the product. The availability of the raw materials is not a problem. Nueva Ecija is known for tilapia farming, especially in Muñoz. Technology In this proposed business, technology will contribute a great help. Lots of equipments and machines will be the instrument of technology. Noodles processing operations include mixing raw materials, dough sheeting, compounding, sheeting/rolling and slitting. This series of processes remains constant among countries for all noodles type. There are lots of advantages in using noodles machines such us: • Easy to operate, saving time and labor. • Machine is easy to assemble, clean and maintain. • Uniform products, reasonable price, small size and easy maintenance. Due to our ongoing research, we tend to develop our machines and equipments. We design and develop of noodles making machines that are best suited for mass production. Used for making raw noodles, our range is not only easy to install but also engineered with perfection and attention to extract uniform size of noodles. This time, our noodles making machine is fitted with heavy duty mild steel fabricated structure. Since it is easy to operate, the operator needs no experience, production is rapid. The thickness of noodles is adjustable. It has advanced design and sanitary. The machine is designed with special alloy steel/cast iron gears minimize both friction and noise providing quiet operation. It also has unique and reliable design. The noodles making machinery are highly effective as well as non stop continuous noodles making process. The equipment we will use: Specifications: Noodle making machine 1 high efficiency 2 high capacity 3 new type machines 4 passed ISO9001:2000 Mass Mixer Mass Mixer is designed for uniformly mixing of dry and wet material and especially suitable for tablet granulation. The mixer consists of a rigid fabricated structure motor, gear box, mixing drum, stirrer and tilting device. The mixing drum complete with stainless steel body, stirrer and tilting device. The mixing drum complete with stainless steel body, stirrer and sealing arrangement. The drive of mixing paddle is through suitable gear box and motor. The tilting device is provided to make easy the unloading of the material and easy cleaning of the mixing drum. Specially designed self adjusting sealing arrangement of unique design is provided to ensure that no black particle enters into the mixing drum. The material under mixing process can be monitoring through acrylic dust cover and its controls dusting and contaminations. The hinged features allow flexibility of adding solution through cover during in operation. The acrylic dust cover is so interlocked that ensure container is totally closed FEATURES: v Design as per stringent cGMP requirements. v All contact parts SS 316 / SS 304 quality. v Tilting device for easy unloading cleaning. v Self adjusting sealing arrangement to avoid entire black particles. v Uniform mixing. v In locked safety mixing process. Intended Target Market The direct target market is those who patronize noodle products by means of retailers and groceries. Retailers will act as middlemen between the company and the end users. There is no specific range of age of market because almost all people eat noodles. The target market is from groceries from pubic markets and big groceries of the five municipalities specifically, Cabanatuan City, Sta. Rosa, San Leonardo, Gapan and Jaen. It is an additional product line to them and will give them additional profit. As for the end users, they will benefit by having new taste of new variety of noodle. As to income, from lower class to higher class, all can afford to buy noodles because of its cheap price. And since Asians loves to eat noodles, all people are identified as target market. There is no need for special occasion to be able to buy noodles. People can eat noodles on a regular basis. The retailers can have our product by negotiation and distribution of our product to them. The company can assure the good quality of the product. Based on the company we interview, a person today wants to buy products that are safe because of the diseases that they can get from other products. Competition In every business there is competition, and competition can do good or bad for the company, so it is needed to be defined in order for the company to be attentive and prepared for the incoming changes and uncertainty that might affect their business. Furthermore, the presence of competition motivates the company to form marketing strategies and improve it from time to time that help builds their unity as a team with one goal and at the same time maximize and enriched the use of their creative thinking for the innovation of their product. Competition is one of the main focuses of this business. Since the proprietors are just beginners, risk is definitely in its utmost state. In coordination with this, we assure that our business will create curiosity that will trigger the interest of our target market to try our product. This will be the first and big step for the proprietor to create a name. Of course, there’s what we call direct and indirect competition and these were identified as: For Direct competition we consider: 1. Branded Noodles namely: 3Q, Royal, Fiesta, etc. The biggest competitor for the reason that they operate for a long time and have gain name as well as trust in the industry, this two factors were siblings and are the most important in business. People who have tried and like these products will least tend to try others. 2. Innovative noodles. One innovative noodle dealer we know and had interviewed is the Philnery Veggie Noodles which as it name implies offers noodles made with vegetables and is located at Aliaga, Nueva Ecija thus, distributing their products in the vicinity of our target province, Nueva Ecija. 3. Affordable Noodles. These were classified as those packed with no labels on it and popular in “kilos” or in grams. It is usually available in the market and people in lower class prefer buying this in order to meet their budget regardless of the quality. For Indirect Competition we consider: 1. Rice. Philippines is a good source of rice, as it is our main agricultural product. Residence cultured rice as their basic food. In result, noodle is just an alternative product for this since they provide same level of satisfaction and that the latter were just introduced by foreigners. 2. Bread and pastries. Just like noodles and rice it brings same satisfaction to the consumer though it is of different type. It is very accessible to market due to its conquering availability in variety stores and bakeries because bread nowadays comes in pouch and have long period of expiration. Furthermore, it gains a large share in market for it is consumed at break or merienda time usually two to four times a day. "Understanding your industry and anticipating its future trends and directions gives you the knowledge you need to react and control your portion of that industry." (Kenneth J. Cook, AMA Complete Guide to Strategic Planning for Small Business). It is true that our business and the product we are going to produce has wide and variety of competitors but we are still confident that we can be able to compete with them and strong enough to handle risk since we are aware of their existence and performance. Moreover, we have conducted interviews and study in order to gather appropriate information that will help us grow in our chosen line of business. But of course, there are still barriers to entry that we should be prepared for and these are: 1. Economies of scale. It occurs when the unit cost of a product declines as production volume increases. Competitors, who have achieved economies of scale through long existence and right strategy, may use this as barrier over us the new entrants by producing in massiveness resulting to force us either compete on a large scale or accept a cost disadvantage in order to compete on a small scale. 2. Product differentiation. It is believe that established competitors have gained customers’ loyalty through continuous advertisement and service efforts which serve as hindrance to us for our target market to try our product. But of course, with the benefits that our product possessesaside from good quality against any ordinary noodles market will definitely be attracted. 3. Inflation rate. Inflation is the rising price of a commodity. When prices of raw materials increase the cost of production will follow resulting to an increase in the market price of the finished product. Hence, people will tend to buy the most affordable or will be hindered to try new ones and just stick to their usual used. 4. Access to channels of distribution. As a beginner in this line of business we must start creating a harmonious relationship towards our channels of distribution by providing discounts and promotion. These will be taken as added expenditure thus; these expenses might serve as barrier for us to overcome in time. 5. Government policy. Completing government requirements might delay the start of business operation therefore arrange it the sooner the better. This business will surely comply with all the needed requirements stated by the law. Since this business will start its operation sooner, for a beginner, there is no age limit for our target market. We will start our distribution to large grocery stores of the five consecutive markets located in Cabanatuan, Sta. Rosa, San Leonardo, Gapan and Jaen in the province of Nueva Ecija. Resources such as the unique ingredient which is the Tilapia fish will be gathered from different trusted and contracted suppliers. The product and market focus is to present to people the unique feature and innovative used of the favorite fish of Filipinos, the Tilapia. From there, curiosity of the people might grow that will lead them to try and have some taste of our product and that’s our first strategy, to obtain the market’s interest. Moreover, people especially fishermen will hopefully be inspired by this product’s innovation and eventually will create their own creative used of Tilapia that will promote employment since our province is one of the good source of said fish specifically, Muños. That will be one contribution for our social responsibility. With this growing advantage, market will be attracted. The weakness is considered as the key feature of the product, the Tilapia itself, for the reason that global warming might affect its production. Lately, the news spread the tragedy in Laguna’s fisheries wherein almost all of the Bangus that they were taking care of float dead. This is due to high temperature that leads to loss of oxygen and we are afraid that such tragedy might occur again and kill the supply of our main ingredient. We are in the modern era; people nowadays were very innovative and adventurous. Many were looking for something new, the weirdest thing will probably be more popular than the plain and simple one. This business came up with the idea of introducing new version of noodle since noodles is taking the country’s taste which is mostly presented and seen in every occasion’s meal. We add up some spice to the regular noodle to satisfy the consumers demand without their budget suffering. “Fish is a highly nutritious food commodity. Being an excellent protein food with fewer calories, it is better than other meat sources. It is rich in omega 3 fatty acids proven to be good for the heart.” (http://www.medindia.net). We have chosen fish as our spice in noodles for we believe that this will provide consumers with more benefits they needed in accordance with the kind of people’s lifestyle today. As what the article state, fish is proven good for the heart and that is very appropriate for those fatty ones, they will surely be hooked up to our product. This type of noodle will fit best to those health conscious not to mention that everybody is after their health because of our changing climate nowadays. In the business launching, the competitors would be affected because their share in the market will probably decline. This is because of the new product line that will be introduced by the business which will be the reason for their current market to patronize its products. The competitors would lower the price of their products to be able to maintain their market but the business can also lower their price more to attract their customers. They always put a mark-up in order to submerge their expenses to avoid loss and to show income. Industry Our Business will focus on production of noodles hence; it will be placed in the category of a manufacturing company in line of noodles industry. “As one of the main staple foods in the Philippines, the outlook for noodles remains favourable, with retail volume and constant value sales expected to grow steadily over the forecast period.” (http://www.euromonitor.com) The demand and supply factor in the beginning of business will depend on our promotion of the product and curiosity of the market to try a new and unique noodle. Since it is first in the market that fish is used as its main ingredient, we believe that step by step our product will sooner be a trending topic that might encourage others to try it. Since poverty, budgeting and diet are common to Filipinos they were sorting to eating noodles. Cultural change and innovation are two large forces that drive the market and our business happens to portray these qualities. We already accepted Chinese and Korean culture and dishes, the proof were seen at television shows, products availability and their restaurants nearby. With this long interaction with them we have already adopted some of their beliefs like the famous saying that preparing pancit on birthdays is a sign of long life for the celebrant. The basic ingredient of pancit is noodle. Noodles are really everywhere, you can even buy it in variety stores. Through the years it undergoes innovation: it comes in different sizes, flavors and packaging. For us, we will add to this noodle innovation by making the noodle extra special and beneficial because fish is a good source of protein, rich in omega 3 fatty acids and other nutrients that is needed by our body. Business Model The figure below shows the flow of the proposed business. The business would be at Sta. Rosa, Nueva Ecija. Tilapia as main ingredient of the product will came from a contracted supplier. The lot will be divided by five sections: the office, the storage room, production room, the finishing room and the parking lot. Ensuring the quality of product by providing proper management would be implemented. The process starts at the company buying ingredients for the production afterwards. The process includes buying of raw materials, mixing and kneading, flavoring and coloring, rolling, pasteurization, cutting, drying and packaging. After the last process, the company will separate the by-product of the tilapia. Then, distribution of the product at the public is the next step. From then, the company will generate profit and this revenue will assist the company in paying the expenditures. Figure 1. Marketing and Sales Strategy “A well-planned sales strategy will help your business achieve its growth potential.” (http://www.sales-efficiency.com) Strategy is necessary for a business to have a direction, to fulfil its objectives and accomplished goals and most of all to strengthen its competitive state. This start-up business label the 4P’s as for strategy. Product – the proprietors make sure that they will only produce quality products. Production process will be strictly monitored and that cleanliness is maintained because we want to offer only the best. Price – a just price will be offered to the public—not too high not too low. We will make sure that everyone can avail this nutritious product. Place – the business will be located in a visible part of the province of Nueva Ecija near the market of Sta. Rosa with a wide cover area for easy access to consumers and smooth distribution to channels. Promotion – print media will be used in promoting the product. Flyers, tarpaulins and posters will be provided along the vicinity of the four municipalities. The business also gives emphasis on the following: Distribution strategy Products will be distributed to public markets. The proprietors will be the one who will directly communicate and make dealings with the market to have a direct contact with the latter and create good relationship. Furthermore, direct communication with your market helps you to properly monitor the flow of business. Service strategy Aside from providing good quality products to the general consumers, the proprietors decided to create a credit list which will be available to the distribution channels. The credit list is a record of the products given to the channels as consignment, which they will pay after a week before getting another bunch of products. This will provide a discount of 1.5% per 100 kilograms of noodles that the channels will get and it will be offered to all grocery stores who wanted to sell our product. This will help gain the channels loyalty for it will serve as a privilege for them to resell our products and pay it after it is all buy out by the consumers. Packaging Strategy The store will used digital printing in its packaging. Labels and designs will be input by the proprietor. The packaging includes the following; Nutrition Facts Brand Name Net Content Brand Logo Store Location Ingredients Used People Strategy The qualified workers will be hired that have pleasing personality to create a good ambiance in the working area. Informal training about the store operation will also be done by the proprietor to ensure the consistency of service and products beingoffered. Innovation Since it is believe that this business will be going to be profitable, the proprietors prepare a plan of innovation and it isthe introduction of the product to different restaurants and malls in the near future. In this way, the product will be more accessible to the market and that channels will have its growing numbers. Management and Personnel a. Organizational chart The business will hire 6 employees, since the owners will be hands-on in this business, it is agreed that important roles will be designated to each of them namely; the manager, process team leader and the distribution team leader. Other works will be filled by different hired people for process department: one food technician and two workers will be hired. For distribution department:a collector, one driver and a helper of the driver will be employed. Duties and responsibilities Manager  Will monitor the whole operation  Communicate with the two team leader  Will implement the policies  Formulate marketing strategies Process team leader  Will supervise the work under production  Will report to the manager  Responsible for the quality inspection supervision  Can assist the workers during free time  Responsible for strict regulatory framework Distribution team leader  Responsible for the duties made during distribution  One who negotiates with retailers  Implements the terms of conditions of the products  Will report to the manager  Responsible for issuing receipt and collection  Strictly monitor the deadlines of the terms  One that keeps the records Factory workers  Responsible for the maintenance of the machine  Responsible for product making and mixing  Responsible for operation of machine Food technician  Responsible for food tasting and inspection  Helps develop the manufacturing process  Involves in conducting food experiments  Responsible for producing product sample Driver and helper  Responsible for the delivery of the products  Responsible for taking care of the product b. Qualifications Factory workers: -male -at least high school graduate -18-25 years old -with good moral and hard working Food Technician -male/female -must possess a Bachelor’s degree in course related to Food technology -must have an experience working in a food manufacturing company. Driver -male -18-25 years of age -at least high school graduate -must have a license and a year driving experience Driver’s helper -male -18-25 years of age -at least high school graduate Production Process Step by Step Procedure in Making Fish Noodles • Step 1. Sift flour, add minced fish meat, salt and lye, add preservatives and mix thoroughly. • Step 2. Form into balls. • Step 3. Cut into 4 quarters and pass through the noodle dough making machine for kneading until about 1-2mm thick. • Step 4. Pass through the noodle cutter to form into preferred shape (rounded or flat). • Step 5. Take it to noodle dryer to dry the noodles. • Step 6. Pack and store at room temperature for future use. Steps Duration per Step Duration per Batch Labor Requirement Machine Requirement Step 1 2 minutes 5 minutes Cook (Factory Worker) Colander, mixing bowl Step 2 8–10 minutes 15–20 minutes Cook (Factory Worker) Rolling pin Step 3 3 minutes 10 minutes Cook (Factory Worker) Noodle dough making machine Step 4 2 minutes 5 minutes Cook (Factory Worker) Noodle cutter Step 5 20 minutes 20 minutes Cook (Factory Worker) Caserole, gas stove, Step 6 30-40 minutes 30-40 minutes Cook (Factory Worker) Noodle Dyer Step 7 2 minutes 5 minutes Cook (Factory Worker) Containers Regulations/Environmental Issues The manufacturing type of business or industry is heavily regulated in an effort to protect the health and safety of its employees, as well as people who come in contact with its product. Whether you're considering the purchase of a small manufacturing company or building one from the ground up, you must understand the regulations that will apply to your business. • Licensing and Permitting/Environmental Regulations Our company obtains some permits and licenses such as business permit which is issued by the town and is required of all business operating within the area. You have to comply with the given requirements before you can get a business permit. Requirements needed are: • Barangay Permit for Business • Community Tax Certificate • DTI Registration Certificate (Photo Copy) • SSS Certificate • Building Permit • Health Certificate • BIR Registration Certificate • Declaration of Previous Years Gross Sales/Receipts • Real Property Tax Clearance In addition, we also acquire a fire safety permit. This is typically issued by the local fire department, which will inspect the premises to ensure that there are no dangerous fire hazards and that people would be able to easily evacuate in the event of a fire. • Product Safety In this project feasibility, we see to it that our products are safe to eat and nutritious enough for every customers. In fact, you can make a product on your own and eat it at the same time without adding any preservatives. But since we are in the business world, we have to put some to ensure the stability of our business. We put the expiration date of every product we have produced in order to let every buyers be aware if until how long they can stock our products. • Employee's Health and Safety Manpower contributes a vital role in the business operation. Without them, we cannot fully achieve every goals and objectives that we have set. We are ensuring the health and safety of our employees as well as giving them the right compensation and proper treatment. Since our business will be manufacturing goods for only three days a week, the workers will receive a minimum wage and pay them on a daily basis. They will also receive some benefits such as SSS which will be deducted to their respective salaries. Since we are rest assured that our business is feasible and will boom in the market world after some foreseeable years, we are going to give an increase to the salaries of our employees as time goes by. Critical Risk Factors A fundamental idea in finance is the relationship between risk and return. The greater the amount of risk that an investor is willing to take on, the greater the potential return. The proposed business expects to have lots of competitors in the market even during the start of business operations. Since we are concentrating on noodles made of fish flakes, we have to be aware that there were already branded noodles in the market world such usRoyal, Fiesta and many others which have got the trust and loyalty of the buyers or consumers of the product. In the near future, there might be an increase to the number of competitors because other businessmen may discover that this kind of business is profitable enough. The flow of economy could also be a basis on how the business will go through. Increase on prices of the raw materials that are necessary in the production of goods may also affect the operation of the business. This will surely cause additional expenses and a bit adjustment on the selling price of the commodity. Since we are using tilapia flakes as the flavor of the noodles, we have contracted a trustable supplier. Yet, there could also be a time where we might hardly have a good supply. All of these are the possible risk factors that we might encounter along the way, but then the business will find and make a way in order to get over and manage these problems through continuous development of our system, processes and the product itself. We will eliminate the things that aren't good enough for the operations and maintain the positive things and outcomes of the business. Through a much better management, proper handling of personnel, good maximization of raw materials, we can surely overcome such risks and sooner or later achieve the goal and objectives of the business. Recommendations To the Government This project feasibility is highly recommended to the government due to great needs of the main ingredient which is the tilapia fish. Government should prioritize and make some innovations to fish farming. They should encourage fishermen and fish pond owners to open their minds on how to maximize their ideas and make their business more effective and efficient. Let them know that tilapia fish is not just cooked for varieties of dishes but can also use in flavoring noodles. Government can also take advantage to use this proposed business as an example when they are conducting livelihood programs to those unemployed citizens. Due to lack of capital, a sole proprietor can operate this business without using noodles making machines. To the Investors We recommend this project to the investors who want to get a high return of investment in a foreseeable future. They should be aware that this kind of business is feasible enough and it is a right business to invest their money. To the Future Entrepreneurs Filipinos are really adventurous! We always want something new, lots of changes. We recommend this project to people who are vying to have their own business in the future. We are encouraging them to see the feasibility of this kind of business. This type is a profitable one since you do not have very big digits of money for capital. Appendices Profile of the Respondents Table 1. Market Place Market Place F % Gapan 40 27 San Leonardo 12 8 Jaen 15 10 Sta. Rosa 27 18 Cabanatuan 56 37 Total 150 100% Table 1 shows the market place where the respondents have taken. It can be seen that 40 or 27% of the respondents are from Gapan while 12 or 8% were from San Leonardo. Respondent from Jaen contributes to 15 or 10% of the total respondents while 27 or 18% was from Sta. Rosa. Lastly, 56 or 37% came from Cabanatuan city.It can be seen that the largest population came from Cabanatuan because of the population of market vendors available from the place. Table 2. What is your bestselling noodle? Answer F % Lomi 0 0 Canton 65 43.33 Pasta 76 50.67 Miki 0 0 Bihon 9 07.03 Malabon 0 0 Total 150 100% Table 2 presents the answer of the respondents to the bestselling noodle. It shows that 65 or 43.33% of the respondents answered Canton as their best seller while 76 or 50.67% of them said that the Pasta was their best seller. According to market vendors, pasta and canton usually is their best seller because of the flavourings that they can add to it. In addition 9 or 7.03% of the respondents answers Bihon as the noodle that has the most buyers whereas no respondents answer Malabon, Miki and Lomi as their bestselling noodles. Table 3. Where did you get your supply of noodles? Answer F % Wholesaler 47 31.33 Own Supplier 100 66.67 Others 3 2.00 Total 150 100% Table 3 shows data about where the respondents got their supply of noodles. It illustrates that 100 or 66.67% of the respondents responded own supplier while 47 or 31.33% of them answers wholesaler as source of their supply. Lastly, 3 or 2% of the total population was categorized as others. Mostly, market vendors prefer to get their supply of noodles from their trusted supplier because they can negotiate for the terms and conditions. Table 4. How often do you get your supplies? Answer F % Everyday 1 00.7 Every week 144 96.00 Every two weeks 5 03.33 Every month 0 0 Others 0 0 Total 150 100% Table 4 shows the answer of the respondents on how often they get supply of noodles. It can be seen from the table that 144 or 96% of the respondents answered that they regularly get their supply of noodles every week then 5 or 3.33% of the respondent stated every two weeks. Another, 1 or 0.7% of the total population said that they often get their supply of noodles everyday whereas no respondents answered on the category every month and others. According to the respondents their supply of noodles usually lasted only for a week. Table 5. How many kilograms of noodles do you often buy? Answer F % 50kgs-below 25 16.67 51-100kgs 125 83.33 101-200kgs 0 0 201kgs-above 0 0 Total 150 100% Table 5 presents the data about how many kilograms of noodles the respondents usually buy. It shows that 125 or 83.33% of the respondents answered 51-100kgs, and then 25 or 16.67% of them responded 50kgs-below. No respondents answered 101-200kgs and 201kgs-above respectively. Table 6. How much is the base price of noodle per kilo? Answer F % P50-below 1 .7 P51-P100 149 99.33 P101-above 0 0 Total 150 100% Table 6 presents the data on how much is the base price of the noodle per kilo. It shows that 149 or 99.33% of the respondents answers P51-P100 whereas 1 or .7% answers P50-below. No respondents answered on the other categories. According to market vendors the usual base price of Pasta and Canton is 55 and 72, respectively. Table 7. What is the process of payment to your suppliers? Answer F % Installment 13 08.67 Cash 23 15.33 Consignment 114 76.00 Total 150 100% Table 7 presents the process of payment of the respondents. The table shows that 114 or 76% of the respondents answers consignment, and then followed by those who answered cash constituting 23 or 15.33% of the total while the remaining 13 or 8.67% of the respondents answers cash. Respondents prefer consignment as their process of payment. The term they use for it is ‘bayad-kuha’. Table 8. How much is your selling price per kilo? Answer F % P50-below 0 0 P51-P100 150 100 P101-above 0 0 Total 150 100% Table 8 presents the data on how much is the selling price of the noodle per kilo. It shows that 150 or 100% of the respondents answers P51-P100. No respondents answered on the other categories. According to them, they add 3 to 4 pesos from the base price. Table 9. How many kilos of noodles do you often sell everyday(on regular day)? Answer F % 10kgs-below 25 16.67 11-20kgs 125 83.33 21-30kgs 0 0 31kgs-above 0 0 Total 150 100% Table 9 illustrates how many noodles do the respondents sell everyday on regular days. It shows that 125 or 83.33% of them answers 11-20kgs then 25 or 16.67% indicates that they often sell 10kgs-below. No respondents answer on the categories of 21-30kgs and 31kgs-above respectively. Table 10. How many kilos of noodles do you often sell everyday?(on peak season) Answer F % 10kgs-below 0 0 11-20kgs 41 27.33 21-30kgs 71 47.33 31kgs-above 38 29.69 Total 150 100% Table 10 illustrates how many noodles do the respondents sell everyday on peak seasons. It shows that 71 or 47.33 of the total respondents answered 21-30kgs, followed by 38 or 29.66% who indicates 31kgs and above as their answer, and then 41 or 27.33% of them said that they can often sell 11-20kgs of noodles. No respondents answer on the category 10kgs-below. On peak season, the respondents say that they can sell twice as much noodle as the regular days. Table 11. What are the months of peak season? Answer F % January-March 22 14.67 April-June 2 01.33 July-September 1 .7 October-December 125 83.33 Total 150 100% The table illustrates the data of the months of peak season. It can be seen that 125 or 83.33% of the respondents answer October-December as their peak season, not quite far from those who answer January-March which constitutes to 22 or 14.67% of the total population. Months of peak season usually are the months that have the most occasions. Table 12. What are the months of low season? Answer F % January-March 4 02.67 April-June 19 12.67 July-September 127 84.67 October-December 1 00.78 Total 150 100% The table illustrates the data of the months of low season. It can be seen that 127 or 84.67% of the respondents answer July-September. The last three categories show no relative values to the total population because of the low percentage. Usually, months of low season are the months of no harvest. Table 13. Are you interested in selling new type of noodle? Answer F % Yes 145 96.67 No 5 3.33 Total 150 100% The table illustrates the willingness of respondents to purchase new variety of products. It can be seen that 145 or 96.67% of them are willing to purchase and sell new type of noodle whereas only 5 or 3.33% of them refuse to sell new products. Statement of Assumptions The researchers assume the following: 1. Sales will increase 15% on the first two years and additional 5% increase on the following years. 2. The raw materials will increase 5% per year because of inflation. 3. The manufacturing overhead will increase 3% per year due to increase of different bills such as electricity, water and phone. 4. As the sales increases, the inventory follows. 5. The price of the products will increase 5% every two years for the reason that the raw materials used in production also increases. 6. The total capital is shared by the partners equally. 7. Depreciation is computed on a straight line method. 8. There is a remaining 10% in the Accounts Receivables each year. Conclusions Based on the findings of the study, the following conclusions are drawn: 1. That the proposed projected is feasible and profitable. 2. That the location is accessible to the target market. 3. That the project is social responsible. 4. That this project is better for sole proprietorship and even partnership. 5. That this project can compete with the existing competitors. 6. That the potential problems can be easily resolved. 7. That noodles is second to rice in frequency of consumption. 8. That noodles and fish, combined together is nutritious because fish is a good source of nutrients. 9. That eating Tilapia noodles is good for the heart for it is rich in omega 3 fatty. Bibliography (www.world-foodhistory.com) (http://www.euromonitor.com) (www.benefitof.com) Mr. Ron Konzak, author of Book of Ramen http://www.pr-inside.com) (www.livestrong.com) (pinoybusiness.org) Kenneth J. Cook, AMA Complete Guide to Strategic Planning for Small Business (http://www.medindia.net) (http://www.euromonitor.com) (http://www.sales-efficiency.com) Personal Data Name : Anne Margareth G. Mauricio Nickname : Gareth Address : San Leonardo, Nueva Ecija Place of Birth: Lacson General Hospital Date of Birth : May 12, 1992 Age : 19 years old Religion : Roman Catholic Parents : Avelino I. Mauricio Jr. : Lolita G. Mauricio Educational Background Primary : C.I Villaroman Elementary School San Leonardo, Nueva Ecija S.Y. 2003-2004 Secondary : Holy Cross College Sta. Rosa, Nueva Ecija S.Y. 2007-2008 Tertiary :College of the Immaculate Conception Sumacab-este, Cabanatuan City, Nueva Ecija 2012 Course : Bachelor of Science in Business Administration Major in Managerial Accounting Personal Data Name : Ruby Ann D. Santos Nickname : Ann Address : Brgy. Tikiw, San Antonio, Nueva Ecija Place of Birth: San Antonio, Nueva Ecija Date of Birth : January 10, 1992 Age : 20 years old Religion : Roman Catholic Parents : Rodeo C. Santos : Rebecca D. Santos Educational Background Primary : Saint Paul School of San Antonio Poblacion, San Antonio, Nueva Ecija 2004 Secondary : Saint Paul School of San Antonio Poblacion, San Antonio, Nueva Ecija 2008 Tertiary : College of the Immaculate Conception Sumacab-este, Cabanatuan City, Nueva Ecija 2012 Course : Bachelor of Science in Business Administration Major in Managerial Accounting Personal Data Name : Sundcel C. Santos Nickname : Sindal Address : Sta. Rosa, Nueva Ecija Place of Birth: Cabanatuan City Date of Birth : November 7, 1991 Age : 20 years old Religion : Iglesia Ni Cristo Parents : Domingo L. Santos : Roselle C. Santos Educational Background Primary : Sta. Rosa Central School Sta. Rosa, Nueva Ecija S.Y. 2003-2004 Secondary : Holy Cross College Sta. Rosa, Nueva Ecija S.Y. 2007-2008 Tertiary : College of the Immaculate Conception Sumacab-este, Cabanatuan City, Nueva Ecija 2012 Course : Bachelor of Science in Business Administration Major in Managerial Accounting